UK manufacturers have hit out at the country’s archaic planning system, claiming the Labour government has not delivered on stated aims to back builders over blockers.

A new report from industry body Make UK found that almost half of manufacturers (46 per cent) believe the current planning system is still hampering the UK’s economic potential, while a similar proportion (43 per cent) say it is slowing their ability to grow or invest. 

The findings, which are based on a survey of 196 company chiefs, will heap pressure on the government to roll out changes beyond those in the Planning and Infrastructure Bill, with Make UK warning of a widening gap between Labour’s public ambitions and a lack of progress for companies seeking to expand and reduce cost burdens. 

Manufacturers identified a “triple threat” of barriers holding them back. The three main points of contention cited were the complexity of planning regulations (48 per cent), the cost of compliance (44 per cent), and inconsistent decision-making across local authorities (38 per cent). 

Faye Skelton, head of policy and campaigns at Make UK, said the current system was “not fit for purpose” and had become “a source of friction rather than a driver of growth.”

“If the government is to deliver on its number one mission to boost growth it must now go further and faster, ensuring planning shifts from being a barrier to a driver,” Skelton said.

Manufacturers back devolution

Environmental protections are also emerging as a growing flashpoint. More than half of manufacturers (54 per cent) said environmental requirements create obstacles at least occasionally, with Make UK pointing to the estimated £100m spent on a tunnel on the HS2 project to protect bats as emblematic of the problem.

Manufacturers are broadly supportive of greater regional coordination as a solution. Two thirds (65 per cent) said coordinated regional planning would make it easier to expand, while more than two thirds back stronger planning powers for regional mayors.

The body also wants the government to establish stronger national planning rules to eliminate the postcode lottery of inconsistent decisions across different local authorities.

The report’s release has coincided with Manchester mayor Andy Burnham’s bid to return to parliament at a by-election in Makerfield next month, with a win there setting him on a path towards a potential Labour leadership contest. 

Burnham has been broadly supportive of mayors being given greater powers while London’s Sir Sadiq Khan has also lobbied the government to give him a bigger say over local decisions. 

Sir Keir Starmer’s government has also staked much of its growth hopes on planning reform, with a fiscal watchdog upgrading economic forecasts off the back of new legislation introduced.

A government spokesperson said: “We recently launched a major consultation on a revamped National Planning Policy Framework – the biggest rewrite of planning rules in more than a decade – and our landmark Planning and Infrastructure Act will help to streamline the planning system.

“We’re also cutting electricity bills for many manufacturers through our modern industrial strategy, and will keep working closely with the industry to ensure our ongoing support is shaped by their views.”